Executive Summary: Resumption of diplomatic relations between the United States and Cuba may open opportunities for
hospitality and tourism industry investors in the island, which is the largest in the Caribbean. Although the U.S. economic
embargo continues (and can only be removed by an act of Congress), executive actions could ease some travel and
trade restrictions. Although Cuba offers considerable potential for hospitality and tourism investors, economic, legal, and
practical questions and barriers remain, starting with the central control maintained by the Cuban government. Foreign
hospitality and tourism companies seeking to do business in Cuba must navigate the requirements of the Cuban
authorities, while operating in the shadow of the U.S. embargo. The following four issues may hamper international
investors: (1) finance and banking availability is lacking; (2) the Cuban government must be a partner in every foreign
enterprise; (3) labor availability and terms are controlled by the government; and (4) the nation lacks credible dispute
resolution entities (courts or arbitration).